Commercial vehicles are used for delivering goods and carrying passengers. Many types of businesses have their own set of commercial vehicles to better manage their delivery costs and expand their operations accordingly. A commercial vehicle or auto loan is a financing solution especially approved for buying a vehicle used for business purposes. This type of loan is given to transportation and logistics businesses or any other small business requiring a commercial vehicle to run their operations. Since many banks and NBFCs (non-banking finance companies) have eased their terms and conditions, getting a commercial vehicle loan has become easy for businesses. They are providing the best commercial vehicle loans at attractive interest rates. Whether you are going to buy your first commercial vehicle or add a new or an old one to your current fleet of vehicles, commercial vehicle loans provide several benefits. Here we talk about the top 5 benefits of commercial vehicle loans.
Multiple Options
One of the biggest benefits of commercial vehicle loan is that it is available to borrowers from different profiles, including entrepreneurs, farmers, individual buyers, trusts, educational institutes, private and public limited companies, etc. The borrower can use the loan to buy any type of commercial vehicle crucial for the business, such as passenger cars, tankers, buses, trucks, and other light and heavy-duty commercial vehicles. The loan applicant should match the eligibility criteria to apply for a commercial vehicle.
Easy and Quick Loan Processing
Applying for a commercial loan is quite easy and convenient, having simple documentation. You need to upload the required documents with the correct personal details without even visiting the branch. Once you submit the required documents, the bank or NBFCs will take just a few days to process a commercial vehicle loan application.
Flexible Repayment Tenure
A commercial vehicle loan is intended to help borrowers ensure smooth business operations. Also, it ensures that businesses do not suffer financial loss or stress while repaying the loan amount. Thus, most banks and NBFCs provide vehicle loans with affordable interest rates and a flexible repayment tenure ranging up to 5 years. This extended loan repayment tenure makes it convenient for borrowers to repay the amount without any financial burden. You can get the loan with easy EMI monthly, quarterly, or yearly, as per your needs and financial plan.
No Credit Score or History Required
One of the most important features of a commercial vehicle loan is it is given to applicants with low credit scores. While other types of loans ask applicants to show their credit record, commercial vehicle loans do not come with such conditions. So, even a person with a poor credit history can apply for a loan. Also, most banks and NBFCs provide commercial vehicle loans without asking for collateral or security from the borrowers, as the vehicle itself is considered the security for the loan amount.
Customised Solutions
The commercial vehicle loan is provided to purchase new or used vehicles. So, most banks and loan providers alter the loan terms according to the type of business and provide customised financing solutions to help borrowers fulfil their requirements. Each financing plan is customised based on the vehicle type, loan duration, and financial status of the borrower. Also, the loan provider considers the business profile of the borrowers to customise the loan amount and frequency of repayments.
In addition, many banks and NBFCs provide borrowers with the option of commercial vehicle refinancing. In vehicle refinancing, an existing loan can be transferred to a different bank or lender to take advantage of better interest rates and loan terms. Getting extra credit or a loan on an existing loan also comes under the refinancing solution.
These are the top 5 benefits of commercial vehicle loans for businesses. Any business owner can apply for a commercial vehicle loan in a bank or NBFC by visiting an online or offline branch. To avail of the loan, the borrower only needs to fill in an application form with the correct information and submit all relevant documents for proof. Once the lender verifies the documents, the loan gets approved in a short span. Another benefit that borrowers get is accessing an EMI calculator to select the right auto loan as per their needs. Additionally, borrowers can utilize an auto loan EMI calculator to assess and choose the most suitable loan terms and monthly instalment options based on their financial preferences. This EMI calculator comes in handy to know about the EMI amount and the overall interest payable throughout the tenure. It helps in planning the financial obligation wisely and choosing a loan term suitably.
